Potential financial benefits from pot legalization still unclear, state and local officials say

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Jan 18, 2014 at 7:20 PMJan 18, 2014 at 7:48 PM

Charles Winokoor Taunton Gazette Staff Reporter @cwinokoor

TAUNTON — It's within the realm of possibility that Massachusetts could follow Colorado's example by legalizing the recreational use of marijuana. But the potential financial ramifications of such a move are unknown.

Sixty-five percent of Bay State voters, after all, voted in 2008 to decriminalize possession of cannabis to a civil offense, with a fine of $100 for being caught with an ounce or less.

Four years later, voters passed a ballot initiative legalizing the use of medical marijuana by a margin of 63 to 37 percent.

In Colorado, 55 percent of voters were in favor of their state becoming the first in the nation to legalize and regulate the recreational use of marijuana. Washington state residents also voted yes, but retail outlets there won't open for business until later in 2014.

No matter whether one agrees that Colorado is sensible by allowing residents to legally buy up to an ounce of pot from a licensed store, the fact is the state stands to see an infusion of cash in the form of associated tax revenue.

Colorado, in addition to its 2.9 percent standard sales tax, is collecting an additional 25 percent from sales of recreational marijuana. Some reports have estimated the state will collect an additional $67 million in revenue, with nearly $28 million being designated for building schools.

In Taunton, meanwhile, the City Council in 2013 agreed not to try blocking the establishment of a nonprofit medical marijuana dispensary within city limits. It instead voted that any pot dispensary, which will be selected by the state, must operate in one of the city's industrial zones.

Notwithstanding those developments, some Taunton and state economic development experts say it's a bit premature to contemplate all that potential gold at the end of the sales-tax rainbow.

"It's a little too early," said Kevin Shea, Taunton's economic and community development director.

Shea said Massachusetts officials will need at least six months to examine how Colorado is distributing the additional revenue to its municipalities, which he said will be manifested in the amount of local aid the state provides.

"It's a really tough projection to make," he said.

Michael Widmer, president of the Massachusetts Taxpayers Foundation, said the nonprofit agency has yet to consider the potential fiscal fringe benefits.

"We haven't looked at it at all," said Widmer, who has been president of the foundation for for 20 years.

He said it will be "at least a year" before the foundation begins to assess the financial data out of Colorado in regard to taxes collected from the sales of recreational pot.

Widmer said he has yet to hear any serious banter on the topic coming from the Statehouse. What he has heard, he said, has been "more tongue-in-cheek than serious."

Kerrie Babin, executive director of the Taunton Area Chamber of Commerce, confirmed in December that all three entities vying for an opportunity to open a medical-pot dispensary in the city had joined her organization.

Babin said she doesn't take a personal position on the ethics of legalizing marijuana for recreational purposes. She instead reiterated that any business enterprise deemed to be legal has a right to join the TACC.

"Whether its gaming or medical marijuana, if it's legal, they shouldn't be stigmatized at that point," she said.

Babin said she assumes sales of recreational cannabis in Massachusetts would be "heavily taxed and regulated." She also said it would be sensible that an educational component be incorporated in schools to warn children of the pitfalls associated with getting high on pot.

"Smoke responsibly," she suggested might be an appropriate catch-phrase.